CSSC Offshore & Marine Engineering (Group) Company Limited's (HKG:317) last week's 3.1% decline must have disappointed private companies who have a significant stake

Key Insights

• Significant control over CSSC Offshore & Marine Engineering (Group) by private companies implies that the general public has more power to influence management and governance-related decisions
• China State Shipbuilding Corporation Limited owns 57% of the company
• Institutions own 11% of CSSC Offshore & Marine Engineering (Group)

To get a sense of who is truly in control of CSSC Offshore & Marine Engineering (Group) Company Limited (HKG:317), it is important to understand the ownership structure of the business. We can see that private companies own the lion's share in the company with 57% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, private companies endured the biggest losses as the stock fell by 3.1%.

Let's take a closer look to see what the different types of shareholders can tell us about CSSC Offshore & Marine Engineering (Group).

View our latest analysis for CSSC Offshore & Marine Engineering (Group)

What Does The Institutional Ownership Tell Us About CSSC Offshore & Marine Engineering (Group)?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in CSSC Offshore & Marine Engineering (Group). This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of CSSC Offshore & Marine Engineering (Group), (below). Of course, keep in mind that there are other factors to consider, too.

CSSC Offshore & Marine Engineering (Group) is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is China State Shipbuilding Corporation Limited with 57% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Meanwhile, the second and third largest shareholders, hold 1.4% and 0.8%, of the shares outstanding, respectively.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of CSSC Offshore & Marine Engineering (Group)

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data cannot confirm that board members are holding shares personally. We do not see this low level of ownership often, and it is possible our data is imperfect. But shareholders can click here to check if insiders have been selling stock.

General Public Ownership

The general public, who are usually individual investors, hold a 32% stake in CSSC Offshore & Marine Engineering (Group). While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

We can see that Private Companies own 57%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - CSSC Offshore & Marine Engineering (Group) has 1 warning sign we think you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.